Question
Below is the information for firm Carrot Brothers: Q = 0.25*K*L C = 0.15 + 0.15*K + 0.10*L 1. Calculate MC, ATC, AVC, and AFC
- Below is the information for firm Carrot Brothers:
Q = 0.25*K*L
C = 0.15 + 0.15*K + 0.10*L
1. Calculate MC, ATC, AVC, and AFC for the firm if L = 3, and K=2, K=3 & K=4.
2. If this firm can sell her products for 2 dollars (P = 2$), calculate the profit under following conditions: K = L = 3; K = 3 & L = 4; K = L = 4. What is the best scenario for the firm to produce among the above choices?
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Managerial Economics Markets and the Firm
Authors: William Boyes
2nd edition
618988629, 978-0618988624
